Bitcoin (BTC) has been consolidating near $23,000 for the past few days. The next big question troubling investors is whether the rally is over or if
Bitcoin (BTC) has been consolidating near $23,000 for the past few days. The next big question troubling investors is whether the rally is over or if Bitcoin resume its recovery.
The strong year-to-date rally in Bitcoin has turned several analysts bullish in the short term. They anticipate Bitcoin to extend its up-move and reach $25,000 and even $30,000.
However, for the slightly longer term, analysts seem to be divided. In comments to Cointelegraph, economist Lyn Alden said Bitcoin could face “considerable danger” in the second half of 2023 as liquidity risks rise.
On the other hand, ARK Invest CEO and chief investment officer Cathie Wood said in a company video blog on Jan. 23 that crypto assets could witness a huge turnaround in 2023 as the Fed pivots due to falling inflation.
What are the critical support and resistance levels to watch out for? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has been witnessing a see-saw battle near $22,800. The bears want to stall the up-move at this level but the bulls are not willing to surrender.
The rising 20-day exponential moving average ($20,700) and the relative strength index (RSI) in the overbought zone suggest that bulls have the upper hand. Buyers will have to kick the price above $23,371 to start the next leg of the rally to $25,211.
If the price turns down from the current level and breaks below $22,292, it could trigger the stops of several short-term traders. That could intensify selling and the BTC/USDT pair could dive to $21,480.
If the price rebounds off this level, the bulls will again try to resume the up-move. The short-term trend may turn bearish below $20,400.
ETH/USDT
After forming Doji candlestick patterns on Jan. 22 and 23, Ether (ETH) turned down sharply on Jan. 24, indicating that the uncertainty resolved in favor of the bears.
The ETH/USDT pair corrected to the 20-day EMA ($1,496) on Jan. 25, which is a crucial support to keep an eye on. If the price bounces off this level, it will suggest that the sentiment remains positive and traders are buying near support.
The pair could then retest the resistance at $1,680. A break above this level could signal the start of the next leg of the up-move. The pair could first rise to $1,800 and thereafter dash toward $2,000.
This bullish view could be negated in the short term if the price plunges below the 20-day EMA. The pair could then fall to $1,352.
BNB/USDT
BNB (BNB) soared above the overhead barrier at $318 on Jan. 24 but the bulls could not maintain the breakout as seen from the long wick on the day’s candlestick.
The bulls purchased the dip to the 20-day EMA ($290) on Jan. 25 as seen from the long tail on the candlestick. This suggests that the BNB/USDT pair could swing between the 20-day EMA and $318 as the bulls and the bears try to assert their supremacy.
If the price rises above $318, it will indicate that the bulls have overpowered the bears. That could catapult the pair to $360. Conversely, a collapse below the 20-day EMA could tilt the advantage in favor of the bears. The pair could then plunge to the 50-day SMA ($270).
XRP/USDT
XRP (XRP) broke above the $0.42 overhead resistance on Jan. 23 but that proved to be a bull trap. The bears yanked the price back below the breakout level on Jan. 24.
The critical level to watch on the downside is the 20-day EMA ($0.38). If the price rebounds off this support, it will indicate that lower levels continue to attract buyers. The bulls will then try to drive the price above the $0.42 to $0.44 zone. If they succeed, the XRP/USDT pair could start an up-move to $0.51.
If bears want to strengthen their position, they will have to drag the price below the 20-day EMA. That could tempt short-term traders to book profits and the pair may plummet to the 50-day SMA ($0.37).
ADA/USDT
Cardano’s (ADA) rally seems to have hit a wall near $0.38. The bears repeatedly thwarted attempts by the bulls to overcome this barrier between Jan. 22 and Jan. 24.
The RSI is showing signs of a negative divergence, signaling that the bullish momentum could be slowing down. Sellers could strengthen their position further if they pull and sustain the price below the 20-day EMA ($0.34). The ADA/USDT pair could first slump to $0.32 and after that to the 50-day SMA ($0.30).
Alternatively, if the price turns up and ascends above $0.38, it will negate the negative divergence. The pair could then travel to $0.44.
DOGE/USDT
Dogecoin (DOGE) has been facing strong resistance at $0.09. The price once again turned down from this level and slipped to the 20-day EMA ($0.08) on Jan. 24.
If the price continues lower and breaks below the moving averages, it will suggest that…
cointelegraph.com